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List of incentives available in this location for quick easy reference below.

Incentives

Table key

  • Incentive offered
  • Incentive not offered
  • Did not submit information
Cash grants/incentivesMore [+]Less [-]
  • Cash Incentive: A cash incentive to a select few companies in targeted sectors who make a significant investment and create jobs in Michigan.
  • Community Development Block Grant: Federal grant providing forgivable loan or reimbursement funds for economic and community development projects. Eligible projects include machinery and equipment, job training, rail enhancements and utility and pipeline projects.
  • Michigan Economic Growth Authority (MEGA) Tax Credits can, in certain circumstances, be structured to provide cash incentives back to approved companies.
Tax exemptionsMore [+]Less [-]
  • Anchor District/Jobs Michigan Business Tax (MBT) Credit: High-technology businesses designated as anchor companies can obtain MBT credits based on the investment made or jobs created by attracted companies.
  • Brownfield Redevelopment MBT Credit: Refundable tax credit up to 12.5% of the eligible capital investment incurred to redevelop a designated Brownfield site.
  • Job Creation MEGA Tax Credit: Refundable tax credit for projects creating high-wage, high-quality jobs.
  • Technology Collaboration Credit: Facilitates partnerships between emerging companies and established companies that may become customers, and investors. Investors can receive a 30% refundable MBT tax credit.
  • PA 451 Pollution Control Property Tax Exemption: Water Pollution Control Exemption: 100% property & sales tax exemption to facilities designed and operated for the control, capture and removal of industrial waste from water; Air Pollution Control Exemption: 100% property & sales tax exemption to facilities designed and operated for controlling or disposing of air pollution.
  • Property Tax Abatements & Exemptions: PA 198 reduces property taxes on new investment by 50% for manufacturers and high-tech businesses; PA 328 reduces property taxes by 100% on investment in new personal property. Michigan exempts inventory, pollution control equipment, and certain tools, dies, jigs and fixtures from local property taxes.
  • Sales & Inventory Tax Exemptions: State sales tax (6%) is not levied on purchase of machinery and equipment used in manufacturing; All inventory is exempt from state and local property taxes.

Other MBT Credits:

  • Compensation Credit equal to 0.37%.
  • Investment Tax Credit equal to 2.9% on the cost of net new capital assets.
  • Research and Development credit equal to 1.9% on Michigan expenditures.
  • Industrial Personal Property tax credit equal to 35% of taxes paid on industrial personal property.
  • Defense Credit for companies bidding on contracts with the U.S. Departments of Defense, Homeland Security, and Energy
Property assistance / other fiscal incentiveMore [+]Less [-]
  • Site Location Assistance: Michigan’s electronic site location network allows for confidential, customized site information tailored to a company’s needs. This system allows us to provide immediate information on available buildings, certified industrial parks, and Greenfield sites in any area of Michigan.
  • Community Development Block Grant (CDBG): Federal grant program provides funds to eligible counties, cities, villages, and townships for economic and community development. Eligible projects include machinery and equipment, job training, rail enhancements and utility and pipeline projects.
  • Transportation Economic Development Fund: Assists in funding of highway, road, and street projects.
  • Michigan Freight Economic Development Program: Provides grants and/or low-interest loans for as much as 50% of the cost of the rail infrastructure to businesses (or local governments) requiring rail service. Loans are made at a minimum interest rate of 2% below the prime rate.
Training and labor market assistanceMore [+]Less [-]
  • Community Development Block Grant: Federal grant program providing workforce training funds for eligible costs incurred for training-related expenses, including wages, trainer fees, materials, vendors, travel, etc.
  • Film and Digital Media Worker Job Training Tax Credit: Companies can receive a 50% MBT credit for costs of on-the-job training for Michigan residents in advanced below-the-line crew positions.
  • Michigan New Jobs Training Program: Allows Michigan community colleges to issue debt on behalf of employers and then receive reimbursement through a diversion of withholding state income taxes generated by the wages earned by the new employees.
  • Michigan Technical Educational Centers: Community college-based Michigan Technical Educational Centers (M-TEC) provide a comprehensive array of standardized and customized training and workforce development programs for Michigan’s businesses.
  • Michigan Works!: Statewide network of agencies and service centers that assist in finding skilled workers and provide low-cost training. Michigan’s Bureau of Workforce Transformation offers No Worker Left Behind free tuition program and Michigan Incumbent Worker training grants.
Loan guarantees, cheap loans or financeMore [+]Less [-]
  • Equity Capital: The 21st Century Investment Fund, Venture Michigan Fund and Invest Michigan Fund create a funding continuum for Michigan high-tech businesses.
  • Recovery Zone Facility Bonds (RZFB): Private activity bonds created through the American Recovery and Reinvestment Act of 2009 to finance certain capital projects. RZFBs can be used to finance projects greater than $10 million for any trade or business, and for projects that normally do not qualify for tax-exempt financing (manufacturing plants, distribution centers, hotels, and research parks).
  • Private Activity Bonds (PAB): Tax-exempt and taxable private activity bonds (PAB) for creditworthy companies considering investing in eligible projects. Tax-exempt PABs can be issued for capital expenditures in manufacturing plants, not-for-profit corporations, co-generation solid waste projects, and solid waste facilities. They can be used for projects up to $10 million per site/municipality, with a $40 million corporate limit. Taxable PABs have few federal restrictions and can be used for financing large business projects in excess of $10 million. The interest rates are approximately 0.50 - 1.25% below conventional long-term rates because state and local income taxes are exempted.
Exemptions from regulationsMore [+]Less [-]
  • Foreign Trade Zones: Michigan has several Foreign Trade Zones that provide competitive advantages to companies involved in international trade through deferral, reduction or elimination of U.S. Customs duties.
  • EB-5 Program: Allows for the admission to permanent residence on a two-year conditional basis to qualified aliens who will contribute to the economic growth of the U.S. by investing in U.S. businesses and creating employment opportunities.
Target sectorsMore [+]Less [-]
  1. Alternative Energy
  2. Life Sciences
  3. Advanced Manufacturing and Defense
Sectors specific incentivesMore [+]Less [-]
  • High-Tech MEGA Tax Credits: Refundable tax credit for companies engaged in qualified high-technology business activities. Company must create at least five qualified new jobs in first year and 25 in five years. Wages for new jobs must exceed 150% of the Federal Minimum Wage.
  • Photovoltaic MBT Credit: Refundable tax credit equal to 25% of the capital investment, up to $15 million. Companies must: operate a facility that develops and manufactures photovoltaic technology, photovoltaic systems, or photovoltaic energy; create a minimum of 500 new jobs; make an investment of $50 million.
  • Michigan NextEnergy Authority MBT Benefits: Non-refundable credit through the MBT for conducting activities related to the research, development, and manufacturing of alternative energy technologies. This credit can reduce the business’s tax liability by up to 10%.
  • Renewable Energy Renaissance Zones (RERZ): Created to promote renewable energy operations and to encourage the development of those industries in Michigan. RERZs significantly reduce or eliminate property taxes, the Michigan Business Tax, and personal income taxes for up to 15 years.

Sponsorship

If you are the authorised promotions agency for Michigan and would like to have your location highlighted on fDi Atlas, you can contact our sales team on + 44 (0) 207 775 6667 or contact us here.